Milan Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Milan Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static budget for 2017: Expected production and sales Expected selling price per unit Total fixed costs 6,100 units $ 700 $1,350,000 Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manufacturing labor: Standard Quantity Direct materials 16 pounds Direct manufacturing labor 3.8 hours Standard Price $14 per pound $ 30 per hour Standard Unit Cost $224 $114 During 2017, actual number of units produced and sold was 5,100, at an average selling price of $730. Actual cost of direct materials used was $1,149,400, based on 70,000 pounds purchased at $16.42 per pound. Direct manufacturing labor-hours actually used were 17,000, at the rate of $33.70 per hour. As a result, actual direct manufacturing labor costs were $572,900. Actual fixed costs were $1,200,000. There were no beginning or ending inventories. Required: 1. Calculate the sales-volume variance and flexible-budget variance for operating income. 2. Compute price and efficiency variances for direct materials and direct manufacturing labor. Milan Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static budget for 2017: Expected production and sales Expected selling price per unit Total fixed costs 6,100 units $ 700 $1,350,000 Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manufacturing labor: Standard Quantity Direct materials 16 pounds Direct manufacturing labor 3.8 hours Standard Price $14 per pound $ 30 per hour Standard Unit Cost $224 $114 During 2017, actual number of units produced and sold was 5,100, at an average selling price of $730. Actual cost of direct materials used was $1,149,400, based on 70,000 pounds purchased at $16.42 per pound. Direct manufacturing labor-hours actually used were 17,000, at the rate of $33.70 per hour. As a result, actual direct manufacturing labor costs were $572,900. Actual fixed costs were $1,200,000. There were no beginning or ending inventories. Required: 1. Calculate the sales-volume variance and flexible-budget variance for operating income. 2. Compute price and efficiency variances for direct materials and direct manufacturing labor.
Expert Answer:
Answer rating: 100% (QA)
SalesVolume Variance and FlexibleBudget Variance for Operating Income Static budget operating income ... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133428704
15th edition
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Posted Date:
Students also viewed these accounting questions
-
Tuscany Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static...
-
Milan Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static...
-
Milan Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static...
-
Suppose a single 802.11n client is connected to an 802.11n access point and there is no other client or access point in the neighborhood. The client senses the medium, then sends a 2000-Byte frame,...
-
The Government of India (GOI) and several private class action plaintiffs (Indian citizens) sued Union Carbide India Limited (UCIL) and the parent corporation, Union Carbide Corporation (UCC), for...
-
Assume that the shortest distance between nodes a, b, c, and d no node y and the costs from node x to nods a, b, c, and d are given below: Day = 5, Dby = 6, Dcy = 4, Ddy = 3 cxa = 2, cxb = 1, cxc =...
-
Find the = 0.10 critical value for the chi-square distribution with 4 degrees of freedom.
-
The following table shows the revenue and average net fixed assets (in millions) for a recent fiscal year for Best Buy and Circuit City Stores, Inc.: a. Compute the fixed asset turnover for each...
-
Using process capability studies, processes may be classified as being in statistical control and capable. Explain the basis and meaning of this classication.
-
You are a financial analyst in the financial planning and analysis department of WCC. You have been assigned the following: Complete a five-year forecast based on the above assumptions. Do you...
-
For her phone service, Martina pays a monthly fee of $30, and she pays an additional $0.04 per minute of use. The least she has been charged in a month is $85.40. What are the possible numbers of...
-
What are some of the ways that you can use to help open the lines of communication in an interview?
-
Why has JRP become popular?
-
What is the main concern in selecting a location for JRP sessions?
-
Why is the facilitator in JRP so important?
-
A relationship is a natural business association between entities. What is the relationship between student and teacher? Does it depend on how many classes a student can take or how many classes a...
-
Why is it important for authors of historical nonfiction to synthesize information? a. b. C. d. to only showcase historical events to make the text amusing and entertaining to make the text factual...
-
Using the information in P11-2B, compute the overhead controllable variance and the overhead volume variance. Data From Problem 11-2B: Huang Company uses a standard cost accounting system to account...
-
Clover has decided that buttermilk may sell better if it was marketed for baking and sold in pints. This would involve additional packaging at an incremental cost of $ 0.70 per pint. Each pint could...
-
Birken Company manufactures shopping bags made of recycled plastic that it plans to sell for $ 5 each. Birken budgets production and sales of 800,000 bags for 2014, with a standard of 400,000...
-
1. Do Exercise 18- 21 using the FIFO method. In Exercise 18- 21, LaCroix Company produces handbags from leather of moderate quality. It distributes the product through outlet stores and department...
-
When the displacement of a machine is given by \(x(t)=18 \cos 8 t\), where \(x\) is measured in millimeters and \(t\) in seconds, find (a) the period of the machine in s, and (b) the frequency of...
-
If the displacement of a machine is given by \(x(t)=0.2 \sin (5 t+3)\), where \(x\) is in meters and \(t\) is in seconds, find the variations of the velocity and acceleration of the machine. Also...
-
The displacement of a machine is expressed as \(x(t)=A \sin (6 t+\phi)\), where \(x\) is in meters and \(t\) is in seconds. If the displacement and the velocity of the machine at \(t=0\) are known to...
Study smarter with the SolutionInn App